Frontken Berhad Annual Report 2020

Annual Report 2020 99 FRONTKEN CORPORATION BERHAD 200401012517 (651020-T) Notes to the Financial Statements (cont’d) 11. PROPERTY, PLANT AND EQUIPMENT (CONT’D) (a) The details of the Group’s property, plant and equipment charged as collateral to certain banks for term loans granted to the Group as mentioned in Note 26 to the financial statements are analysed as follows:- Carrying Amount 2020 2019 RM RM Long-term leasehold building – 16,907,636 (b) Certain plant and equipment and office space of the Group are leased to customers under operating leases with rentals payable monthly. Each of the leases contains an initial non-cancellable average period of 2 years and the subsequent renewals are negotiated separately on a contract by contract basis. The Group does not require a financial guarantee on its lease arrangements. The undiscounted operating lease payments receivable are as follows:- The Group 2020 2019 RM RM Within 1 year 911,203 491,131 Between 1 and 2 years 1,296,711 233,873 2,207,914 725,004